Crypto

Despite Regulatory Obstacles, Binance Intends to Register as a UK Firm

Binance CEO Changpeng Zhao

Despite being ordered by the country’s regulator to stop trading in June 2021 the exchange’s CEO claims it plans to expand to the United Kingdom in the next six to 18 months.

Despite being told by the country’s authority to stop trading earlier this year, Binance CEO Changpeng Zhao said the exchange plans to expand to the United Kingdom (UK) in the next six to 18 months.

In June 2021 the Financial Conduct Authority (FCA) of the United Kingdom removed Binance’s permission to trade in the country, as part of a sweeping regulatory crackdown on cryptocurrency exchanges. Binance is one of the largest cryptocurrency exchanges in the world.

The platform must adhere to money laundering and terrorist financing rules to become a registered crypto-asset firm in the United Kingdom. To meet these regulations, Zhao stated that the company was considering forming a separate company to operate in the United Kingdom, similar to Binance.US.

Binance aims to seek for an FCA license, Zhao told the Telegraph on Dec. 4 after hiring a “number of ex-regulatory professionals from the UK” and a “couple of hundred compliance people” since the FCA notice in June.

To help facilitate improved relations with international regulatory organizations, the crypto exchange giant engaged the former head of international relations at the Dubai Financial Services Authority (DFSA) as its chief regulatory liaison officer in October.

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Zhao also stated that the platform has “completely re-engaged” with authorities and is working on “several very important reforms” in “product offerings, internal processes, and the way we operate with regulators.”

Binance could offer futures and derivatives in the United Kingdom if the FCA gives its approval. As regulators continued to ratchet up the fire, Binance stated in September that Australian customers would have 90 days to liquidate their positions in futures, options, and leveraged tokens.

Binance had previously banned futures trading for users in Germany, Italy, and the Netherlands as part of a larger strategy to stop offering these products throughout Europe.

Because Binance had not responded to questions concerning its headquarters, the FCA issued a supervisory warning in August claiming that it was “not capable” of adequately overseeing the company.

Even though the exchange has refuted all claims of market manipulation, it continues to face opposition from several countries, including Germany, Malaysia, and South Korea.

The Author

Samuel Adeshina

Samuel is a financial reporter whose interests include blockchain, market, business, insurance, and Crypto to provide relevant information to all interested.